Recent 4.x iOS updates haven’t been too fabulous for the iPhone 3G.  First it was slow as a dog, then Apple started peeling back some of the cooler features like Gamecenter.   We’re afraid another new feature is getting cut from the iPhone 3G.  AirPlay is gone from iOS 4.2 GM.

Below is an iPhone 4 (bottom) and an iPhone 3G (top) showing AirPlay option on iPhone 4 but not on iPhone 3G

After speaking to multiple developers and users testing out the iOS 4.2 betas, we have determined that AirPlay did in fact work on the iPhone 3G at one point, meaning the AirPlay functionality was definitely removed from Apple’s two-year-old iPhone at its GM stage. The reason this is an issue is because Apple states, even on their own website, that AirPlay is supported on ALL iOS 4 devices.

Why did Apple remove AirPlay from the iPhone 3G? It is clearly able to work, it worked during the betas just fine. Is this another “it didn’t work well enough” story? Is Apple trying to get users to upgrade to their latest and greatest devices for arguably the coolest new feature in iOS 4.2? We have no idea.  There will undoubtedly be a jailbreak that can re-enable it. On the other hand, this could simply be an issue in the GM seed. Like we speculated in an AirPrint article today, the AirPlay functionality may too return in iOS’s 4.2’s public release.

AirPlay will only stream music as well as audio from video at this time. The actual AirPlay functionality will presumably be activated in an imminent software update to the Apple TV. Note: This was fully tested by both our sources as well as on two of our own iPhone 3G units. Video after the break:

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